How Fed Rate Cuts Can Boost Your Finances

Refinance Your Mortgage and Other Debts

With lower interest rates, refinancing loans like home loans and auto loans becomes financially sensible. When the Federal Reserve cuts rates, it often means mortgage rates will drop too. Even a small reduction can lead to big savings. For instance, refinancing a $300,000 mortgage from 6.5% to 6.0% can save you nearly $100 a month. If you have home equity, refinancing could also allow you to access those funds for other uses, such as consolidating high-interest credit card debt.